90.2K

Verified Solution

Link Copied!

1st pic

2nd pic

3rd pic

4th

5th

Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82,60 on December 31, 2012 Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2012 and 2011 2012 2011 Retained earings, January 1 $3,704,000 $3,264,000 Net income $ 600,000 $ 550,000 Dividends: On preferred stock (10,000) (10,000) On common stock (100,000) (100,000) Increase in retained earnings $ 490,000 $ 440,000 Retained earnings, December 31 $4,194,000 $3,704,000 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 2041 2012 2011 Sales $ 10,850,000 $10,000,000 Cost of goods sold (6,000,000) (5,450,000) Gross profit 54,850,000 $ 4,550,000 Selling expenses $ 2,170,000) $ 2,000,000) Administrative expenses 01,627,500) (1,500,000) Gross profit Selling expenses Administrative expenses Total operating expenses Operating income Other revenue and expense: Other revenue Other expense (interest) Income before income tax expense income tax expense $ 4,850,000 $ (2,170,000) (1,627,500) $(3,797,500) $ 1,052,500 $ 4,550,000 $(2,000,000) (1,500,000) $ (3,500,000) $ 1,050,000 99,500 (132,000) $ 1,020,000 (420,000) $ 600,000 20,000 (120,000) $ 950,000 (400,000) $ 550,000 Net income Marshall Inc. Comparative Balance Sheet December 31, 2012 and 2041 2012 20Y1 Assets Current assets: Cash Marketable securities Accounts receivable (net) Inventories Prepaid expenses $1,050,000 301,000 585,000 420,000 108,000 $ 950,000 420,000 500,000 380,000 20,000 Tarkettore securities BUTO ZUUUU Accounts receivable (net) 585,000 500,000 Inventories 420,000 380,000 Prepaid expenses 108,000 20,000 Total current assets $ 2,464,000 $2,270,000 Long-term investments 800,000 800,000 Property, plant, and equipment (net) 5,760,000 5,184,000 Total assets $ 9,024,000 $8,254,000 Liabilities Current liabilities $ 880,000 $ 800,000 Long-term liabilities: Mortgage note payable, 6% $ 200,000 50 Bonds payable, 4% 3,000,000 3,000,000 Total long-term liabilities $3,200,000 $3,000,000 Total liabilities $ 4,080,000 $3,800,000 Stockholders' Equity Preferred 4% stock, 55 par $ 250,000 $ 250,000 Common stock, $5 par 500,000 500,000 Retained earnings 4,194,000 3,704,000 Total stockholders' equity $4,944,000 $4,454,000 Total liabilities and stockholders' equity $ 9,024,000 58.254.000 Determine the following measures for 2072. Round to one decimal place, including percentages, except for per-share amounts, which should be rounded to the nearest cent, 1. Worldng Capital Retained earnings 4,194,000 3,704,000 Total stockholders' equity $ 4,944,000 $4,454,000 Total liabilities and stockholders' equity $ 9,024,000 $8,254,000 Determine the following measures for 2072. Round to one decimal place, including percentages, except for per-share amounts, which should be rounded to the nearest cent. 1. Working Capital 2. Current ratio 3. Quick ratio 4. Accounts recelvable turnover 5. Number of days' sales in receivables 6. Inventory turnover 7. Number of days' sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders' equity 10. Times interest earned 11. Asset turnover 12. Return on total assets 9 13. Return on stockholders equity 06 90 14. Return on common stockholders' equity 15. Earnings per share on common stock 1. Working Capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in recevables 6. Inventory turnover 7. Number of days' sales in Inventory 3. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders' equity 10. Times Interest earned

Answer & Explanation Solved by verified expert

See Answer